The EU-Japan Economic Partnership Agreement and its Relevance for the Austrian Economy

Since the beginning of 2017, a paradigm change in international trade policy is observed. While protectionist agendas are on the rise, the EU and Japan signed an Economic Partnership Agreement (EPA) on 17 July 2018. It is the EU’s most ambitious agreement with any Asian state. The study estimates the effect of the EU-Japan EPA for Austria based on qualitative analysis and a structural gravity model. The model predicts small but positive effects of around 0.01% of GDP for Austria. Highest gains are expected for manufactured goods, particularly in the medium- and high-tech sectors.